Provident Bancorp, Inc. Reports Results for the June 30, 2024 Quarter
Provident Bancorp (PVBC) reported a net loss of $3.3 million for Q2 2024, compared to net income of $5.0 million in Q1 2024 and $3.5 million in Q2 2023. The loss was primarily due to a $6.5 million provision for credit losses, largely attributed to a $7.1 million reserve on an enterprise value relationship. Net interest income decreased by 19.8% year-over-year to $12.0 million, while the net interest margin contracted to 3.27% from 3.69% in Q2 2023. Total assets decreased by 1.4% to $1.65 billion, and total deposits fell by 5.0% to $1.265 billion since December 31, 2023. The company is focusing on reducing its risk profile by eliminating digital asset lending and decreasing exposure to enterprise value lending.
Provident Bancorp (PVBC) ha riportato una perdita netta di 3,3 milioni di dollari per il secondo trimestre del 2024, rispetto a un utile netto di 5,0 milioni di dollari nel primo trimestre del 2024 e di 3,5 milioni di dollari nel secondo trimestre del 2023. La perdita è stata principalmente dovuta a una riserva per perdite su crediti di 6,5 milioni di dollari, attribuita in gran parte a una riserva di 7,1 milioni di dollari in un rapporto di valore aziendale. Il reddito netto da interessi è diminuito del 19,8% su base annuale a 12,0 milioni di dollari, mentre il margine netto d’interesse si è contratto al 3,27% rispetto al 3,69% del secondo trimestre del 2023. Gli attivi totali sono diminuiti dell'1,4%, a 1,65 miliardi di dollari, e i depositi totali sono calati del 5,0%, a 1,265 miliardi di dollari, rispetto al 31 dicembre 2023. L'azienda si sta concentrando sulla riduzione del proprio profilo di rischio eliminando i prestiti su asset digitali e diminuendo l’esposizione ai prestiti su valore aziendale.
Provident Bancorp (PVBC) reportó una pérdida neta de 3,3 millones de dólares para el segundo trimestre de 2024, en comparación con un ingreso neto de 5,0 millones de dólares en el primer trimestre de 2024 y de 3,5 millones de dólares en el segundo trimestre de 2023. La pérdida se debió principalmente a una provisión por pérdidas crediticias de 6,5 millones de dólares, atribuida en gran parte a una reserva de 7,1 millones de dólares en una relación de valor empresarial. Los ingresos netos por intereses disminuyeron un 19,8 % en comparación con el año anterior, alcanzando los 12,0 millones de dólares, mientras que el margen de interés neto se contrajo al 3,27% desde el 3,69% del segundo trimestre de 2023. Los activos totales disminuyeron un 1,4% a 1,65 mil millones de dólares, y los depósitos totales cayeron un 5,0% a 1,265 mil millones de dólares desde el 31 de diciembre de 2023. La empresa se está enfocando en reducir su perfil de riesgo eliminando el préstamo de activos digitales y disminuyendo la exposición al préstamo de valor empresarial.
Provident Bancorp (PVBC)는 2024년 2분기 330만 달러의 순손실을 기록했으며, 이는 2024년 1분기 500만 달러의 순이익 및 2023년 2분기 350만 달러와 비교되는 수치입니다. 손실은 주로 650만 달러의 신용 손실 대비 준비금으로 인한 것이며, 이는 기업 가치 관계에 대한 710만 달러의 준비금에 크게 기인합니다. 순이자 수익은 전년 대비 19.8% 감소하여 1,200만 달러에 달했으며, 순이자 마진은 2023년 2분기 3.69%에서 3.27%로 축소되었습니다. 총 자산은 1.4% 감소하여 16억 5천만 달러가 되었고, 총 예금은 2023년 12월 31일 이후 5.0% 감소하여 12억 6천5백만 달러에 이르렀습니다. 이 회사는 디지털 자산 대출을 제거하고 기업 가치 대출에 대한 노출을 줄이는 방향으로 리스크 프로파일을 감소시키는 데 집중하고 있습니다.
Provident Bancorp (PVBC) a annoncé une perte nette de 3,3 millions de dollars pour le 2ème trimestre 2024, contre un bénéfice net de 5,0 millions de dollars au 1er trimestre 2024 et de 3,5 millions de dollars au 2ème trimestre 2023. Cette perte est principalement due à une provision pour pertes de crédit de 6,5 millions de dollars, largement attribuée à une réserve de 7,1 millions de dollars sur une relation de valeur d'entreprise. Les revenus nets d'intérêts ont diminué de 19,8 % par rapport à l'année précédente pour atteindre 12,0 millions de dollars, tandis que la marge nette d'intérêt est passée de 3,69 % au 2ème trimestre 2023 à 3,27 %. Les actifs totaux ont diminué de 1,4 % pour s'établir à 1,65 milliard de dollars, et les dépôts totaux ont chuté de 5,0 % pour atteindre 1,265 milliard de dollars depuis le 31 décembre 2023. L'entreprise se concentre sur la réduction de son profil de risque en éliminant les prêts sur actifs numériques et en diminuant l'exposition aux prêts sur valeur d'entreprise.
Provident Bancorp (PVBC) meldete einen netto Verlust von 3,3 Millionen Dollar im 2. Quartal 2024, verglichen mit einem Nettogewinn von 5,0 Millionen Dollar im 1. Quartal 2024 und 3,5 Millionen Dollar im 2. Quartal 2023. Der Verlust wurde hauptsächlich durch eine Rückstellung für Kreditverluste von 6,5 Millionen Dollar verursacht, die größtenteils auf eine Rücklage von 7,1 Millionen Dollar im Zusammenhang mit dem Unternehmenswert zurückzuführen ist. Die Nettozinseinnahmen fielen im Jahresvergleich um 19,8 % auf 12,0 Millionen Dollar, während die Nettozinsmarge von 3,69 % im 2. Quartal 2023 auf 3,27 % sank. Die Gesamtsumme der Vermögenswerte verringerte sich um 1,4 % auf 1,65 Milliarden Dollar, und die Gesamteinlagen gingen seit dem 31. Dezember 2023 um 5,0 % auf 1,265 Milliarden Dollar zurück. Das Unternehmen konzentriert sich darauf, sein Risikoprofil zu reduzieren, indem es die Kreditvergabe für digitale Vermögenswerte einstellt und die Exposition gegenüber der Kreditvergabe auf Unternehmenswerte verringert.
- Net loans increased by 2.1% to $1.35 billion since December 31, 2023
- Market value per share increased by 12.0% to $10.19 from Q1 2024
- Book value per share increased to $12.70 from $12.55 at December 31, 2023
- Shareholders' equity increased by 1.1% to $224.3 million since December 31, 2023
- Net loss of $3.3 million for Q2 2024, compared to net income in previous quarters
- $6.5 million provision for credit losses, primarily due to a $7.1 million reserve on an enterprise value relationship
- Net interest income decreased by 19.8% year-over-year
- Net interest margin contracted to 3.27% from 3.69% in Q2 2023
- Total deposits decreased by 5.0% to $1.265 billion since December 31, 2023
- Non-accrual loans increased to 1.29% of total assets, up from 0.74% in Q1 2024
Insights
Provident Bancorp's Q2 2024 results paint a challenging picture for the company. The reported net loss of
The primary factors contributing to this poor performance include:
- A large reserve of
$7.1 million booked against a$17.6 million enterprise value relationship - Continued pressure on funding costs due to the high interest rate environment
- A decrease in net interest and dividend income by
4.3% quarter-over-quarter and19.8% year-over-year - An increase in the provision for credit losses to
$6.5 million , up from a$5.6 million credit loss benefit in the previous quarter
On a positive note, the company is actively working to improve its risk profile by eliminating its digital asset lending portfolio and reducing exposure to enterprise value lending. The yield on interest-earning assets increased slightly to
However, the increase in non-accrual loans to
Investors should closely monitor the company's efforts to shift its loan portfolio towards traditional real estate and commercial lending, as well as its strategies to reduce funding costs in the coming quarters.
Provident Bancorp's Q2 2024 results reflect the broader challenges facing the banking industry in the current economic environment. The company's struggles with net interest margin compression and rising funding costs are symptomatic of the industry-wide pressures caused by the Federal Reserve's aggressive interest rate hikes.
Key observations:
- The net interest margin decreased to
3.27% from3.38% in the previous quarter and3.69% a year ago, highlighting the squeeze on profitability. - The cost of funds increased to
3.89% , up 20 basis points from the previous quarter and 83 basis points year-over-year, illustrating the intense competition for deposits. - The company's strategic shift away from digital asset lending and enterprise value lending towards more traditional banking products is a prudent move, albeit one that may impact growth in the short term.
The increase in non-accrual loans, particularly in the enterprise value portfolio, is a red flag that warrants close attention. This trend could be an early indicator of broader credit quality issues that may emerge as the economy navigates uncertain waters.
Provident Bancorp's efforts to expand its online presence and implement targeted marketing campaigns to drive deposit growth are commendable and align with industry trends. However, the effectiveness of these initiatives in a highly competitive deposit market remains to be seen.
The reopening of the main office in Amesbury is a positive step towards community reengagement, which could help strengthen the bank's local deposit base. However, this alone is unlikely to solve the funding cost challenges in the near term.
Overall, Provident Bancorp's performance underscores the delicate balancing act regional banks face in managing asset quality, funding costs and growth in the current banking landscape.
From a risk management perspective, Provident Bancorp's Q2 2024 results reveal both positive steps and areas of concern:
Positive Risk Management Actions:
- Elimination of the digital asset lending portfolio, reducing exposure to a volatile and high-risk sector
- Decreasing exposure to enterprise value lending, which typically carries higher risk
- Shift towards traditional real estate and commercial lending, generally considered more stable asset classes
- Proactive approach to detecting and addressing loans showing signs of stress
Areas of Concern:
- Significant increase in non-accrual loans, rising to
1.29% of total assets from0.74% in the previous quarter - Large individually analyzed reserve of
$7.1 million on a single$17.6 million enterprise value relationship, indicating potential concentration risk - Net charge-offs increased to
$2.1 million , up from$22,000 in the previous quarter - Overall increase in the allowance for credit losses to
1.49% of total loans, up from1.18%
The company's strategy to reduce its risk profile is commendable, but the execution appears to be challenging. The significant reserve on a single enterprise value relationship highlights the potential volatility in this portfolio segment. Additionally, the sharp increase in non-accrual loans suggests that credit quality issues may be emerging more broadly.
While the shift towards more traditional lending is prudent, it's important that the bank maintains strict underwriting standards in these areas, especially given the current economic uncertainties. The management's acknowledgment of the need for diligence in detecting stressed loans is positive, but the effectiveness of these efforts will be critical to monitor in coming quarters.
Overall, while Provident Bancorp is taking steps to manage its risk profile, the current results indicate that significant challenges remain. Continued vigilance and potentially more aggressive risk mitigation strategies may be necessary to navigate the current economic environment successfully.
In announcing these results, Joseph Reilly, Chief Executive Officer, said, "We continue to make positive strides in the execution of our strategic plan, including reducing our risk profile through the elimination of our digital asset lending portfolio and decreasing our exposure to enterprise value lending, while managing our balance sheet to improve projected earnings. This quarter's results were overshadowed by a large reserve booked in our enterprise value portfolio and, coupled with the prevailing interest rate environment putting continued pressure on funding costs, resulted in a net loss for the quarter. We are confident that our current efforts to improve asset quality and earnings will provide the foundation to shift the mix of our loan portfolio towards traditional real estate and commercial lending, while reducing our cost of funds by capitalizing on the optionality presented by our funding positioning."
For the quarter ended June 30, 2024, net interest and dividend income was
Total interest and dividend income was
Total interest expense was
Mr. Reilly noted, "Amidst a highly competitive landscape for retail deposits, we are leveraging our marketing efforts to drive growth. By expanding our online presence and implementing targeted marketing campaigns, we aim to attract and secure more deposits. These initiatives are complemented by our continued commitment to community reengagement."
The Company recognized a
Net charge-offs totaled
Non-accrual loans were
Mr. Reilly noted, "The increase in non-accrual loans during the second quarter was primarily due to modifications executed on a
Noninterest income was
Noninterest expense was
The Company recorded an income tax benefit of
Total assets were
Total deposits were
As of June 30, 2024, shareholders' equity totaled
Mr. Reilly concluded, "After four years of closed doors, our main office in
About Provident Bancorp, Inc.
Provident Bancorp, Inc. (NASDAQ:PVBC) is the holding company for BankProv, a full-service commercial bank headquartered in
Forward-looking statements
This news release may contain certain forward-looking statements, such as statements of the Company's or the Bank's plans, objectives, expectations, estimates and intentions. Forward-looking statements may be identified by the use of words such as, "expects," "subject," "believe," "will," "intends," "may," "will be" or "would." These statements are subject to change based on various important factors (some of which are beyond the Company's or the Bank's control), and actual results may differ materially. Accordingly, readers should not place undue reliance on any forward-looking statements (which reflect management's analysis of factors only as of the date on which they are given). These factors include: general economic conditions; interest rates; inflation; levels of unemployment; legislative, regulatory and accounting changes; monetary and fiscal policies of the
Investor contact:
Joseph Reilly
President and Chief Executive Officer
Provident Bancorp, Inc.
jreilly@bankprov.com
Provident Bancorp, Inc. Consolidated Balance Sheet | ||||||||||||
At | At | At | ||||||||||
June 30, | March 31, | December 31, | ||||||||||
2024 | 2024 | 2023 | ||||||||||
(Dollars in thousands) | (unaudited) | (unaudited) | ||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 19,192 | $ | 21,341 | $ | 22,200 | ||||||
Short-term investments | 152,425 | 169,510 | 198,132 | |||||||||
Cash and cash equivalents | 171,617 | 190,851 | 220,332 | |||||||||
Debt securities available-for-sale (at fair value) | 27,328 | 27,912 | 28,571 | |||||||||
Federal Home Loan Bank stock, at cost | 5,121 | 3,605 | 4,056 | |||||||||
Loans: | ||||||||||||
Commercial real estate | 510,395 | 478,293 | 468,928 | |||||||||
Construction and land development | 57,145 | 76,785 | 77,851 | |||||||||
Residential real estate | 6,671 | 6,932 | 7,169 | |||||||||
Mortgage Warehouse | 256,516 | 212,389 | 166,567 | |||||||||
Commercial | 144,700 | 164,789 | 176,124 | |||||||||
Enterprise value | 394,177 | 407,233 | 433,633 | |||||||||
Digital asset | — | 10,071 | 12,289 | |||||||||
Consumer | 92 | 88 | 168 | |||||||||
Total Loans | 1,369,696 | 1,356,580 | 1,342,729 | |||||||||
Allowance for credit losses on loans | (20,341) | (16,006) | (21,571) | |||||||||
Net loans | 1,349,355 | 1,340,574 | 1,321,158 | |||||||||
Bank owned life insurance | 45,357 | 45,037 | 44,735 | |||||||||
Premises and equipment, net | 12,713 | 12,835 | 12,986 | |||||||||
Accrued interest receivable | 6,396 | 5,921 | 6,090 | |||||||||
Right-of-use assets | 3,704 | 3,739 | 3,780 | |||||||||
Deferred tax asset, net | 14,462 | 13,048 | 14,461 | |||||||||
Other assets | 10,749 | 15,236 | 14,140 | |||||||||
Total assets | $ | 1,646,802 | $ | 1,658,758 | $ | 1,670,309 | ||||||
Liabilities and Shareholders' Equity | ||||||||||||
Deposits: | ||||||||||||
Noninterest-bearing demand deposits | $ | 311,814 | $ | 310,343 | $ | 308,769 | ||||||
NOW | 84,811 | 66,019 | 93,812 | |||||||||
Regular savings | 168,387 | 258,776 | 231,593 | |||||||||
Money market deposits | 452,139 | 450,596 | 456,408 | |||||||||
Certificates of deposit | 247,504 | 246,344 | 240,640 | |||||||||
Total deposits | 1,264,655 | 1,332,078 | 1,331,222 | |||||||||
Borrowings: | ||||||||||||
Short-term borrowings | 138,000 | 80,000 | 95,000 | |||||||||
Long-term borrowings | 9,630 | 9,663 | 9,697 | |||||||||
Total borrowings | 147,630 | 89,663 | 104,697 | |||||||||
Operating lease liabilities | 4,118 | 4,142 | 4,171 | |||||||||
Other liabilities | 6,064 | 5,632 | 8,317 | |||||||||
Total liabilities | 1,422,467 | 1,431,515 | 1,448,407 | |||||||||
Shareholders' equity: | ||||||||||||
Preferred stock, | — | — | — | |||||||||
Common stock, | 177 | 177 | 177 | |||||||||
Additional paid-in capital | 124,665 | 124,415 | 124,129 | |||||||||
Retained earnings | 107,963 | 111,266 | 106,285 | |||||||||
Accumulated other comprehensive loss | (1,637) | (1,602) | (1,496) | |||||||||
Unearned compensation - ESOP | (6,833) | (7,013) | (7,193) | |||||||||
Total shareholders' equity | 224,335 | 227,243 | 221,902 | |||||||||
Total liabilities and shareholders' equity | $ | 1,646,802 | $ | 1,658,758 | $ | 1,670,309 | ||||||
Provident Bancorp, Inc. Consolidated Income Statements (Unaudited) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Interest and dividend income: | ||||||||||||||||||||
Interest and fees on loans | $ | 20,311 | $ | 20,069 | $ | 19,652 | $ | 40,380 | $ | 39,658 | ||||||||||
Interest and dividends on debt securities available-for-sale | 243 | 237 | 246 | 480 | 484 | |||||||||||||||
Interest on short-term investments | 1,318 | 1,729 | 2,978 | 3,047 | 3,361 | |||||||||||||||
Total interest and dividend income | 21,872 | 22,035 | 22,876 | 43,907 | 43,503 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposits | 9,607 | 9,340 | 7,670 | 18,947 | 11,571 | |||||||||||||||
Interest on short-term borrowings | 281 | 178 | 230 | 459 | 1,054 | |||||||||||||||
Interest on long-term borrowings | 31 | 31 | 74 | 62 | 160 | |||||||||||||||
Total interest expense | 9,919 | 9,549 | 7,974 | 19,468 | 12,785 | |||||||||||||||
Net interest and dividend income | 11,953 | 12,486 | 14,902 | 24,439 | 30,718 | |||||||||||||||
Credit loss expense (benefit) - loans | 6,467 | (5,543) | (740) | 924 | 2,195 | |||||||||||||||
Credit loss (benefit) - off-balance sheet credit exposures | (9) | (38) | (327) | (47) | (1,483) | |||||||||||||||
Total credit loss expense (benefit) | 6,458 | (5,581) | (1,067) | 877 | 712 | |||||||||||||||
Net interest and dividend income after credit loss expense (benefit) | 5,495 | 18,067 | 15,969 | 23,562 | 30,006 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Customer service fees on deposit accounts | 665 | 674 | 769 | 1,339 | 1,748 | |||||||||||||||
Service charges and fees - other | 349 | 309 | 527 | 658 | 978 | |||||||||||||||
Bank owned life insurance income | 319 | 302 | 272 | 621 | 538 | |||||||||||||||
Other income | 190 | 71 | 134 | 261 | 385 | |||||||||||||||
Total noninterest income | 1,523 | 1,356 | 1,702 | 2,879 | 3,649 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits | 7,293 | 8,145 | 8,109 | 15,438 | 16,653 | |||||||||||||||
Occupancy expense | 407 | 443 | 421 | 850 | 842 | |||||||||||||||
Equipment expense | 160 | 152 | 151 | 312 | 295 | |||||||||||||||
Deposit insurance | 321 | 333 | 368 | 654 | 646 | |||||||||||||||
Data processing | 402 | 413 | 374 | 815 | 735 | |||||||||||||||
Marketing expense | 76 | 18 | 161 | 94 | 244 | |||||||||||||||
Professional fees | 984 | 1,314 | 919 | 2,298 | 2,322 | |||||||||||||||
Directors' compensation | 177 | 174 | 164 | 351 | 364 | |||||||||||||||
Software depreciation and implementation | 584 | 543 | 483 | 1,127 | 900 | |||||||||||||||
Insurance expense | 303 | 301 | 450 | 604 | 902 | |||||||||||||||
Service fees | 234 | 242 | 281 | 476 | 517 | |||||||||||||||
Other | 653 | 657 | 870 | 1,310 | 1,542 | |||||||||||||||
Total noninterest expense | 11,594 | 12,735 | 12,751 | 24,329 | 25,962 | |||||||||||||||
(Loss) income before income tax expense | (4,576) | 6,688 | 4,920 | 2,112 | 7,693 | |||||||||||||||
Income tax (benefit) expense | (1,268) | 1,707 | 1,459 | 439 | 2,129 | |||||||||||||||
Net (loss) income | $ | (3,308) | $ | 4,981 | $ | 3,461 | $ | 1,673 | $ | 5,564 | ||||||||||
(Loss) earnings per share: | ||||||||||||||||||||
Basic | $ | (0.20) | $ | 0.30 | $ | 0.21 | $ | 0.10 | $ | 0.34 | ||||||||||
Diluted | $ | (0.20) | $ | 0.30 | $ | 0.21 | $ | 0.10 | $ | 0.34 | ||||||||||
Weighted Average Shares: | ||||||||||||||||||||
Basic | 16,706,793 | 16,669,451 | 16,568,664 | 16,688,122 | 16,549,751 | |||||||||||||||
Diluted | 16,729,012 | 16,720,653 | 16,570,017 | 16,723,763 | 16,550,666 | |||||||||||||||
Provident Bancorp, Inc. Net Interest Income Analysis (Unaudited) | ||||||||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||
June 30, | March 31, | June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||
Interest | Interest | Interest | ||||||||||||||||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | ||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Paid | Rate (5) | Balance | Paid | Rate (5) | Balance | Paid | Rate (5) | |||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||
Loans (1) | $ | 1,328,650 | $ | 20,311 | 6.11 | % | $ | 1,323,260 | $ | 20,069 | 6.07 | % | $ | 1,346,654 | $ | 19,652 | 5.84 | % | ||||||||||||||||||
Short-term investments | 102,395 | 1,318 | 5.15 | % | 123,546 | 1,729 | 5.60 | % | 236,367 | 2,978 | 5.04 | % | ||||||||||||||||||||||||
Debt securities available-for-sale | 27,485 | 206 | 3.00 | % | 28,234 | 205 | 2.90 | % | 28,278 | 197 | 2.79 | % | ||||||||||||||||||||||||
Federal Home Loan Bank stock | 1,865 | 37 | 7.94 | % | 1,783 | 32 | 7.18 | % | 2,254 | 49 | 8.70 | % | ||||||||||||||||||||||||
Total interest-earning assets | 1,460,395 | 21,872 | 5.99 | % | 1,476,823 | 22,035 | 5.97 | % | 1,613,553 | 22,876 | 5.67 | % | ||||||||||||||||||||||||
Noninterest earning assets | 104,388 | 98,890 | 99,685 | |||||||||||||||||||||||||||||||||
Total assets | $ | 1,564,783 | $ | 1,575,713 | $ | 1,713,238 | ||||||||||||||||||||||||||||||
Liabilities and shareholders' equity: | ||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Savings accounts | $ | 215,344 | $ | 1,646 | 3.06 | % | $ | 244,148 | $ | 1,961 | 3.21 | % | $ | 149,625 | $ | 408 | 1.09 | % | ||||||||||||||||||
Money market accounts | 456,566 | 4,499 | 3.94 | % | 454,883 | 4,238 | 3.73 | % | 513,348 | 4,550 | 3.55 | % | ||||||||||||||||||||||||
NOW accounts | 69,737 | 225 | 1.29 | % | 82,831 | 183 | 0.88 | % | 115,869 | 202 | 0.70 | % | ||||||||||||||||||||||||
Certificates of deposit | 251,361 | 3,237 | 5.15 | % | 230,616 | 2,958 | 5.13 | % | 230,023 | 2,510 | 4.36 | % | ||||||||||||||||||||||||
Total interest-bearing deposits | 993,008 | 9,607 | 3.87 | % | 1,012,478 | 9,340 | 3.69 | % | 1,008,865 | 7,670 | 3.04 | % | ||||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||||||||||||
Short-term borrowings | 17,439 | 281 | 6.45 | % | 12,181 | 178 | 5.85 | % | 18,352 | 230 | 5.01 | % | ||||||||||||||||||||||||
Long-term borrowings | 9,642 | 31 | 1.29 | % | 9,675 | 31 | 1.28 | % | 16,148 | 74 | 1.83 | % | ||||||||||||||||||||||||
Total borrowings | 27,081 | 312 | 4.61 | % | 21,856 | 209 | 3.83 | % | 34,500 | 304 | 3.52 | % | ||||||||||||||||||||||||
Total interest-bearing liabilities | 1,020,089 | 9,919 | 3.89 | % | 1,034,334 | 9,549 | 3.69 | % | 1,043,365 | 7,974 | 3.06 | % | ||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 306,081 | 306,349 | 437,167 | |||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 10,519 | 12,041 | 19,380 | |||||||||||||||||||||||||||||||||
Total liabilities | 1,336,689 | 1,352,724 | 1,499,912 | |||||||||||||||||||||||||||||||||
Total equity | 228,094 | 222,989 | 213,326 | |||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 1,564,783 | $ | 1,575,713 | $ | 1,713,238 | ||||||||||||||||||||||||||||||
Net interest income | $ | 11,953 | $ | 12,486 | $ | 14,902 | ||||||||||||||||||||||||||||||
Interest rate spread (2) | 2.10 | % | 2.28 | % | 2.61 | % | ||||||||||||||||||||||||||||||
Net interest-earning assets (3) | $ | 440,306 | $ | 442,489 | $ | 570,188 | ||||||||||||||||||||||||||||||
Net interest margin (4) | 3.27 | % | 3.38 | % | 3.69 | % | ||||||||||||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 143.16 | % | 142.78 | % | 154.65 | % | ||||||||||||||||||||||||||||||
(1) | Interest earned/paid on loans includes |
(2) | Interest rate spread represents the difference between the weighted average yield on interest-bearing assets and the weighted average rate of interest-bearing liabilities. |
(3) | Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. |
(4) | Net interest margin represents net interest income divided by average total interest-earning assets. |
(5) | Annualized. |
For the Six Months Ended | ||||||||||||||||||||||||
June 30, 2024 | June 30, 2023 | |||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | |||||||||||||||||||
(Dollars in thousands) | Balance | Paid | Rate (5) | Balance | Paid | Rate (5) | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans (1) | $ | 1,325,955 | $ | 40,380 | 6.09 | % | $ | 1,369,172 | $ | 39,658 | 5.79 | % | ||||||||||||
Short-term investments | 112,971 | 3,047 | 5.39 | % | 139,189 | 3,361 | 4.83 | % | ||||||||||||||||
Debt securities available-for-sale | 27,859 | 411 | 2.95 | % | 28,501 | 389 | 2.73 | % | ||||||||||||||||
Federal Home Loan Bank stock | 1,824 | 69 | 7.57 | % | 2,445 | 95 | 7.77 | % | ||||||||||||||||
Total interest-earning assets | 1,468,609 | 43,907 | 5.98 | % | 1,539,307 | 43,503 | 5.65 | % | ||||||||||||||||
Noninterest earning assets | 101,639 | 108,385 | ||||||||||||||||||||||
Total assets | $ | 1,570,248 | $ | 1,647,692 | ||||||||||||||||||||
Liabilities and shareholders' equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Savings accounts | $ | 229,746 | $ | 3,607 | 3.14 | % | $ | 146,061 | $ | 519 | 0.71 | % | ||||||||||||
Money market accounts | 455,724 | 8,737 | 3.83 | % | 413,765 | 6,463 | 3.12 | % | ||||||||||||||||
NOW accounts | 76,284 | 408 | 1.07 | % | 121,466 | 348 | 0.57 | % | ||||||||||||||||
Certificates of deposit | 240,989 | 6,195 | 5.14 | % | 207,870 | 4,241 | 4.08 | % | ||||||||||||||||
Total interest-bearing deposits | 1,002,743 | 18,947 | 3.78 | % | 889,162 | 11,571 | 2.60 | % | ||||||||||||||||
Borrowings | ||||||||||||||||||||||||
Short-term borrowings | 14,811 | 459 | 6.20 | % | 43,857 | 1,054 | 4.81 | % | ||||||||||||||||
Long-term borrowings | 9,658 | 62 | 1.28 | % | 17,222 | 160 | 1.86 | % | ||||||||||||||||
Total borrowings | 24,469 | 521 | 4.26 | % | 61,079 | 1,214 | 3.98 | % | ||||||||||||||||
Total interest-bearing liabilities | 1,027,212 | 19,468 | 3.79 | % | 950,241 | 12,785 | 2.69 | % | ||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||
Noninterest-bearing deposits | 306,215 | 465,958 | ||||||||||||||||||||||
Other noninterest-bearing liabilities | 11,280 | 19,921 | ||||||||||||||||||||||
Total liabilities | 1,344,707 | 1,436,120 | ||||||||||||||||||||||
Total equity | 225,541 | 211,572 | ||||||||||||||||||||||
Total liabilities and equity | $ | 1,570,248 | $ | 1,647,692 | ||||||||||||||||||||
Net interest income | $ | 24,439 | $ | 30,718 | ||||||||||||||||||||
Interest rate spread (2) | 2.19 | % | 2.96 | % | ||||||||||||||||||||
Net interest-earning assets (3) | $ | 441,397 | $ | 589,066 | ||||||||||||||||||||
Net interest margin (4) | 3.33 | % | 3.99 | % | ||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 142.97 | % | 161.99 | % | ||||||||||||||||||||
(1) | Interest earned/paid on loans includes |
(2) | Interest rate spread represents the difference between the weighted average yield on interest-bearing assets and the weighted average rate of interest-bearing liabilities. |
(3) | Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. |
(4) | Net-interest margin represents net interest income divided by average total interest-earning assets. |
(5) | Annualized. |
Provident Bancorp, Inc. Select Financial Highlights (Unaudited) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Performance Ratios: | ||||||||||||||||||||
(Loss) return on average assets (1) | (0.85) | % | 1.26 | % | 0.81 | % | 0.21 | % | 0.68 | % | ||||||||||
(Loss) return on average equity (1) | (5.80) | % | 8.93 | % | 6.49 | % | 1.48 | % | 5.26 | % | ||||||||||
Interest rate spread (1) (2) | 2.10 | % | 2.28 | % | 2.61 | % | 2.19 | % | 2.96 | % | ||||||||||
Net interest margin (1) (3) | 3.27 | % | 3.38 | % | 3.69 | % | 3.33 | % | 3.99 | % | ||||||||||
Noninterest expense to average assets (1) | 2.96 | % | 3.23 | % | 2.98 | % | 3.10 | % | 3.15 | % | ||||||||||
Efficiency ratio (4) | 86.03 | % | 92.00 | % | 76.79 | % | 89.06 | % | 75.54 | % | ||||||||||
Average interest-earning assets to average interest-bearing liabilities | 143.16 | % | 142.78 | % | 154.65 | % | 142.97 | % | 161.99 | % | ||||||||||
Average equity to average assets | 14.58 | % | 14.15 | % | 12.45 | % | 14.36 | % | 12.84 | % | ||||||||||
At | At | At | ||||||||||
June 30, | March 31, | December 31, | ||||||||||
(Dollars in thousands) | 2024 | 2024 | 2023 | |||||||||
Asset Quality | ||||||||||||
Non-accrual loans: | ||||||||||||
Commercial real estate | $ | 60 | $ | — | $ | — | ||||||
Residential real estate | 352 | 357 | 376 | |||||||||
Commercial | 1,864 | 1,923 | 1,857 | |||||||||
Enterprise value | 19,038 | — | 1,991 | |||||||||
Digital asset | — | 10,071 | 12,289 | |||||||||
Consumer | 2 | 1 | 4 | |||||||||
Total non-accrual loans | 21,316 | 12,352 | 16,517 | |||||||||
Total non-performing assets | $ | 21,316 | $ | 12,352 | $ | 16,517 | ||||||
Asset Quality Ratios | ||||||||||||
Allowance for credit losses on loans as a percent of total loans (5) | 1.49 | % | 1.18 | % | 1.61 | % | ||||||
Allowance for credit losses on loans as a percent of non-performing loans | 95.43 | % | 129.58 | % | 130.60 | % | ||||||
Non-performing loans as a percent of total loans (5) | 1.56 | % | 0.91 | % | 1.23 | % | ||||||
Non-performing loans as a percent of total assets | 1.29 | % | 0.74 | % | 0.99 | % | ||||||
Capital and Share Related | ||||||||||||
Shareholders' equity to total assets | 13.62 | % | 13.70 | % | 13.29 | % | ||||||
Book value per share | $ | 12.70 | $ | 12.87 | $ | 12.55 | ||||||
Market value per share | $ | 10.19 | $ | 9.10 | $ | 10.07 | ||||||
Shares outstanding | 17,667,327 | 17,659,146 | 17,677,479 | |||||||||
(1) | Annualized. |
(2) | Interest rate spread represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of interest-bearing liabilities. |
(3) | Net interest margin represents net interest income as a percent of average interest-earning assets. |
(4) | The efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income, excluding gains on securities available for sale, net. |
(5) | Loans are presented at amortized cost. |
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SOURCE Provident Bancorp Inc.
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